Shiv Aum Steels reports Rs 17.03 crore operating outflow

Shiv Aum Steels Limited reported a Rs 17.03 crore net cash outflow from operating activities for the half year ended 30 September 2026, despite reporting Rs 9.47 crore of profit before tax. The cash-flow statement shows a Rs 13.15 crore increase in trade receivables and a Rs 10.15 crore increase in other assets during the period.

Why did Shiv Aum Steels report an operating cash outflow?

Shiv Aum Steels reported the Rs 17.03 crore operating cash outflow after working-capital movements exceeded its Rs 12.10 crore operating profit before working-capital changes for the half year ended 30 September 2026. The company states that it is primarily engaged in steel trading and operates in a single business segment under Indian Accounting Standard 108, or Ind AS 108.

The largest stated adverse movement was the Rs 13.15 crore increase in trade receivables, followed by a Rs 10.15 crore increase in other assets. The cash-flow statement also records a Rs 5.10 crore decrease in short-term borrowings and a Rs 42.68 lakh decrease in trade payables, while a Rs 71.45 lakh decline in inventory and a Rs 1.30 crore rise in other liabilities partly offset those movements.

The filing presents cash flow from operations of negative Rs 26.80 crore before income-tax payments, income taxes paid of Rs 2.36 crore, and prior-year tax adjustments of Rs 1.87 lakh. It then reports net cash flow from operating activities of negative Rs 17.03 crore. The displayed intermediate amounts do not arithmetically reconcile to the reported operating-cash-flow total, so the filing presents a reconciliation issue within the cash-flow statement.

How did Shiv Aum Steels' first-half profit change?

Shiv Aum Steels increased profit before tax to Rs 9.47 crore for the half year ended 30 September 2026 from Rs 3.38 crore in the half year ended 30 September 2025. Total income rose to Rs 299.22 crore from Rs 222.71 crore, while total expenses increased to Rs 289.75 crore from Rs 219.33 crore over the same periods.

Profit after tax was Rs 7.12 crore for the 2026 half year, compared with Rs 2.40 crore a year earlier. Basic and diluted earnings per share were Rs 5.24, against Rs 1.76 in the corresponding prior-year period; the company labels both half-year earnings-per-share figures as not annualised. The standalone results show no exceptional or extraordinary items in either half-year period.

In the quarter ended 30 September 2026, Shiv Aum Steels recorded Rs 4.54 crore of profit before tax, compared with Rs 4.93 crore in the quarter ended 30 June 2026 and Rs 1.06 crore in the quarter ended 30 September 2025. Quarterly total income was Rs 160.29 crore, above Rs 138.94 crore in June 2026 and Rs 109.58 crore a year earlier.

What changed in Shiv Aum Steels' working capital?

Shiv Aum Steels' trade receivables rose to Rs 72.95 crore at 30 September 2026 from Rs 59.80 crore at 31 March 2026. That balance-sheet increase is consistent with the Rs 13.15 crore cash-flow movement recorded under trade receivables for the half year.

Other current assets increased to Rs 34.81 crore at 30 September 2026 from Rs 27.87 crore at 31 March 2026, while loans rose to Rs 11.83 crore from Rs 8.90 crore. Current investments also increased to Rs 13.68 crore from Rs 12.02 crore, adding to the funds held in current assets at the reporting date.

Inventories fell to Rs 94.76 crore from Rs 95.47 crore over the six months, a reduction reflected as a Rs 71.45 lakh favourable cash-flow movement. Cash and bank balances were Rs 10.08 crore at 30 September 2026, compared with Rs 9.81 crore at the preceding 31 March year end.

How did Shiv Aum Steels fund its cash position?

Shiv Aum Steels reported Rs 15.95 crore of net cash from financing activities in the half year ended 30 September 2026. The statement lists Rs 19.39 crore of net proceeds from current borrowings and Rs 3.44 crore of interest paid, and the financing inflow offset much of the reported Rs 17.03 crore operating outflow.

Investing activities generated Rs 1.36 crore of cash, according to the filing. The company reported Rs 3.07 crore from sales of current investments, against Rs 2.34 crore spent buying current investments, as well as Rs 76.90 lakh of interest received and Rs 13.89 lakh spent on property, plant, equipment and intangible assets.

The three cash-flow sections resulted in a Rs 27.46 lakh increase in cash and cash equivalents, from Rs 9.81 crore at the start of the period to Rs 10.08 crore at 30 September 2026. Separately, non-current borrowings increased to Rs 31.93 crore from Rs 12.54 crore, while current borrowings declined to Rs 76.39 crore from Rs 81.48 crore.

What is the review status of Shiv Aum Steels' results?

Shiv Aum Steels' standalone financial results and cash-flow statement for the half year ended 30 September 2026 were unaudited. The Audit Committee reviewed the results and the board approved them on 13 November 2026, according to the company’s notes to the financial statements.

Agrawal Jain & Gupta conducted a limited review under Regulation 33 of the Securities and Exchange Board of India listing regulations. The reviewer said nothing had come to its attention indicating that the standalone statement did not make required disclosures or contained a material misstatement, while also stating that a review is narrower in scope than an audit.

Conclusion

Shiv Aum Steels combined higher first-half income and profit with a reported Rs 17.03 crore operating cash outflow for the half year ended 30 September 2026. The increase in receivables and other assets was larger than the cash release from lower inventory, while financing activities supplied Rs 15.95 crore and cash and cash equivalents increased by Rs 27.46 lakh.

The filing discloses no receivables-collection target, borrowing target or operating-cash-flow guidance for a future period. The next financial-results disclosure will show whether trade receivables of Rs 72.95 crore and other current assets of Rs 34.81 crore change, and whether the cash-flow statement’s displayed operating-cash-flow reconciliation is clarified.